The law of one price states that

Multiple Choice

$$ in competitive markets free of transportation costs and trade barriers, identical products sold in different countries must sell for the same price when their price is expressed in terms of the same currency.

$$ when the growth in a country's money supply is faster than the growth in its output, price inflation is fueled.

a country's "nominal" interest rate $($i$)$ is the sum of the required "real" rate of interest $(r)$ and the expected rate of inflation over the period for which the funds are to be lent $($I$).$